A Fresh Start Is Possible. Let's Find Out If Chapter 7 Is Right for You.
Chapter 7 bankruptcy can eliminate most unsecured debts — credit cards, medical bills, personal loans — within 3 to 6 months. Apello Consulting helps you understand exactly what to expect.
Overview
What Is Chapter 7 Bankruptcy?
Chapter 7 is a federal bankruptcy process that allows individuals to discharge — or permanently eliminate — most qualifying unsecured debts. It is the most common form of personal bankruptcy filed in the United States.
Unlike Chapter 13, which involves a multi-year repayment plan, Chapter 7 provides a relatively quick resolution. Most cases conclude within 4 to 6 months of filing, giving you a genuine fresh start without years of ongoing payments.
Eligibility
Do I Qualify for Chapter 7?
Eligibility for Chapter 7 is primarily determined by the “means test” — a federal calculation that compares your income to the median income in your state for a household of your size. If your income falls below the threshold, you generally qualify.
Michigan-specific criteria include:
- Your income is below the Michigan median for your household size
- OR after allowable expenses, your disposable income doesn’t exceed the statutory threshold
- You have not filed for Chapter 7 in the past 8 years
The means test can seem complicated, but that's exactly where Apello comes in. We help you understand whether you're likely to qualify before you spend money on legal filings.
Debt Discharge
What Debts Does Chapter 7 Eliminate?
CAN Be Discharged
- Credit card debt
- Medical and hospital bills
- Personal loans
- Payday loans
- Utility arrears
CANNOT Be Discharged
- Student loans (in most cases)
- Child support and alimony
- Most tax debts
- Debts resulting from fraud
Your Assets
What Happens to My Property?
One of the biggest fears people have about filing Chapter 7 is losing their home, car, or personal belongings. The good news is that Michigan's exemption laws protect many of your assets.
Michigan exemptions typically protect:
- Home equity (up to a certain value under the homestead exemption)
- Your vehicle (within the state’s vehicle exemption limits)
- Retirement accounts (401k, IRA, and pensions)
- Household goods, clothing, and personal items
In fact, the majority of Chapter 7 cases are what's called “no-asset” cases — meaning the filer keeps everything they own. The process is designed to give you a fresh start, not to take away the essentials you need to move forward.
Our Role
How Apello Helps with Chapter 7
- Explain the means test in plain language so you understand whether you’re likely to qualify
- Walk you through each stage of the Chapter 7 process from start to finish
- Help you gather and organize the documentation needed for your case
- Connect you with licensed bankruptcy attorneys when legal representation is needed
Important Disclosure
Apello Consulting does not file court documents or provide legal representation. We are a consulting firm that helps you understand the Chapter 7 process and connects you with licensed attorneys when needed. Our role is to educate and guide — not to practice law.